ENERGY ACTION LIMITED — Capital/Financing Update 2014

Oct 1, 2014

==> picture [112 x 42] intentionally omitted <==

Thursday, 2 October 2014

Energy Action enters into $12.0m secured debt facility

• Energy Action Limited (ASX: EAX) has entered into a $12m secured debt facility with CBA

• The Facility will be available in part to fund purchase price instalments for the recent EnergyAdvice acquisition

• The Facility has a term of 5 years

Energy Action Limited ( EAX ) is pleased to announce that it has entered into a new $12.0 million, five year multi‐option secured debt facility with the Commonwealth Bank of Australia ( CBA ) ( Facility ).

Funds advanced under the Facility will be available for use by EAX for the purposes of, among other matters:

• general corporate purposes and working capital requirements of the EAX group;

• paying future purchase price instalments for the recent EnergyAdvice Pty Limited and Exergy Holdings Pty Limited acquisitions;

• financing future acquisitions; and

• funding fees, costs and expenses payable in connection with the establishment of the Facility.

Funding may be provided under the Facility in the form of:

• loan advances;

• bank guarantees; and

• letters of credit.

Funds advanced under the Facility are secured by a charge granted by EAX and certain other members of the EAX group over all of their assets and undertakings.

It is also proposed that EnergyAdvice, Exergy Holdings and Exergy Holdings’ Australian subsidiary (together the Acquired Subsidiaries ) grant an all‐assets charge in favour of CBA as security for repayment of the funds advanced under the Facility. By entering into that all‐assets charge, the Acquired Subsidiaries will be giving financial assistance to EAX in connection with the acquisition by EAX of shares in the Acquired Subsidiaries. EAX will seek the approval of its shareholders to the giving of the financial assistance by the Acquired Subsidiaries to satisfy the requirement for shareholder approval under the Corporations Act 2001 (Cth). Approval for the giving of financial assistance will be sought at the upcoming Annual General Meeting of EAX ( AGM ), and further details will be provided in the Notice of Meeting for that AGM.

Representations and warranties, covenants and undertakings that are customary for facilities of this nature are made and given by EAX under the Facility.

The Facility includes an Interest Cover Ratio covenant and Gearing Ratio covenant, which are each tested at 30 June and 31 December of each year.

____________________________________________________________________________________

Further information:

Scott Wooldridge, Chief Executive Officer: (61 2) 9633 6471

Energy Action (Australia) Pty Ltd Level 5, 56 Station Street, Parramatta NSW 2150 1300 553 551 | info@energyaction.com.au | www.energyaction.com.au